Brazil’s former president: “Fisiologismo” — private benefit from public funds, only way to run the country

Interesting because a whole lot of people disagree with the very very statist and crony Lula da Silva. In fact hundreds of thousands turned out in the street to protest this ongoing system (and the current president) just a few of weeks ago.

Brazil march

Menos Marx. Mais Mises.

lmmm c                     c

(From The Rio Times)

In Brazil, as most readers know, the crony system has been around for a long time. Just after his election in 2002, President Lula publicly defended the practice of creating a number of new cabinet ministries, and handing them out to political parties who would support his legislative program.

Last week Lula was quoted by Uruguay’s former president as saying it was the only way to govern Brazil. But he was wrong — the “mensalão” and “petrolão” schemes also worked. This year, of course, at least theoretically, there are no more “mensalão” nor “petrolão” schemes to “persuade” ornery Brazilian congressmen to support the government.

Nevertheless, as the Curmudgeon pointed out in “Fisiologismo 101” back in March, there are lots of other prize political plums, most of which involve Board positions on government-owned companies and agencies that spend BIG money. These are called “second echelon” or even “third echelon” positions; the Boards that run these companies determine where they spend their funds.

Click here for the article.